Trump order sends market into spin as market eyes Eurozone GDP
31 January, 2017
Yesterday was a very busy start to the week in the way of data. However, it was more political news that moved the market. Last week’s controversial executive order from newly elected President Travel ban saw the USD weaken over the weekend, and in turn as we often see with the see-saw effect allowed the Euro to strengthen against the pound.
However, as the market opened yesterday much of this began to reverse, although the debate is still ongoing as to the Presidents order itself. In the morning’s trading, the pound gained back almost ¾ of a cent against the single currency while the greenback began to claw back lost ground against the pound.
The pound’s gains against the Euro were somewhat short-lived following some strong Eurozone consumer confidence. Economic sentiment indicator reports mid-morning, which coupled with the market correcting from a recent near 5 cent rise saw GBP to EUR rates slip back, and by the end of the day’s trading closed just over 30pips down. The Dollar’s advance continued against the pound with GBP to USD rates dropping by around half a cent. EUR toUSD was up and down closing close to is open following the strong Eurozone eco stats released during the day.
Today is fairly busy one for critical data – already in the early hours of this morning, the Bank of Japan released their interest rate decision, although this remained unchanged. This morning we see Eurozone GDP, unemployment, and inflation data all released at 10.00AM. Certainly, these releases have the ability to move rates, and with analysts predicting a growth figure for GDP, investors and traders will be watching keenly for the result and any change.
In the afternoon we have some releases from the US- home price and purchasing managers index- and while not of major note given the influence the USD is currently could have an impact. And with debate raging in the Commons yesterday and indeed globally, Trumps and the US position on his controversial executive order could see not only USD rates move but also EUR rates against the Pound.
Should you have, any future requirements speak to your Currency Index broker today. Currency Index offers a range of ways in which you can secure currency to try and help you get the most out of your transfer, provided by friendly and professional brokers with an award winning level of service. So don’t get caught out in what is a very volatile market and perhaps a costly increase in your business purchase or dream holiday home abroad.
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